Exam 39: Consumer Law

MoneyMaker Toy Company violated the safety standards set forth by the Consumer Product Safety Commission when it produced a toy gun that caused injury to hundreds of children.Because of MoneyMaker's actions:

The type of product that prompted passage of the Consumer Product Safety Act was:

Victoria has a MasterCard with a credit limit of $9,000.This is:

Ron's Furnace Repair advertised it would inspect any homeowner's furnace for free.Janet had Ron's come to inspect her furnace.The servicewoman dismantled the entire furnace then refused to put it back together unless Janet paid her $250.The FTC considers such a practice to be:

Under FTC rules,a customer can cancel a door-to-door sales contract within:

The Consumer Trade Commission focuses mainly on protection of consumers in the area of antitrust law.

Brett applies for a $30,000 loan to purchase a truck for his family's use.This loan is subject to TILA disclosure requirements.

If the FTC determines a business has violated the law,it will normally try to get the business to voluntarily stop the activity.

Employers must have written permission from job applicants to request a credit report.

Such a provision within the credit card contract is:

Consumer credit reporting agencies are unregulated governmental agencies.

A company advertised a pain relief ointment called "Aspercreme." The package stated "the strong relief of aspirin right where you hurt." The product did not contain any aspirin.The FTC ruled that:

Marla applies for and receives a three-year loan through Sharkey Lenders for $5,000 at 27% APR.If the loan agreement violates the applicable usury statute,Marla may be able to keep:

The Trimbles apply to Community Savings & Loan for an installment loan of $20,000 to remodel their bathroom.Discuss the disclosures Community is required to make.

The issue in the Gray v.American Express Co.case involved:

What are the three tests or elements used by the FTC to determine whether a particular act is an unfair trade practice?

The Truth-in-Lending Act applies to private individuals who loan money.

The Equal Credit Opportunity Act makes it illegal for a lender to discriminate against a potential borrower because of race,national origin,religion,or sex,but it is permissible to treat a borrower differently if he or she is on welfare.

Company policy of PushOne,Inc.is to block the company name and telephone number on potential customers' Caller ID systems so they won't know the call is from a telemarketer.This policy violates FTC rules.

The Federal Trade Commission Act considers the terms "deceptive" and "unfair" to be synonymous when determining what practices should be prohibited.